ED starts money laundering probe against Zee founder Subhash Chandra
The investigation follows a CBI FIR regarding loans that allegedly caused LIC Housing Finance Limited a loss of ₹1,322 crore.
The Enforcement Directorate (ED) has initiated a money laundering investigation against Essel Group chairperson and Zee founder Subhash Chandra, according to the Hindustan Times. The probe concerns loans provided by LIC Housing Finance Limited (LICHFL) to two group companies, which allegedly resulted in a ₹1,322 crore loss to the public sector lender.
An officer stated that an Enforcement Case Information Report (ECIR) has been registered following a Central Bureau of Investigation (CBI) FIR filed on August 31. The CBI named Chandra as the primary accused in the FIR, which includes charges of criminal conspiracy, cheating, and criminal breach of trust.
Chandra provided personal guarantees for the borrowings based on net worth certificates submitted in 2018. For a ₹500 crore loan to Vasant Sagar, he submitted a certificate stating a net worth of ₹59,113 crore as of March 31, 2017. For a ₹480 crore loan to Digital Subscriber Management and Consultancy Services Pvt Limited, he provided a certificate stating a net worth of ₹40,562 crore on July 6, 2018.
The CBI alleged that Chandra denied having the net worth stated in those certificates during personal insolvency proceedings. During those proceedings, Chandra stated his 2024 net worth was ₹31.79 crore and that he did not possess more than ₹40,000 crore in 2017-18.
A spokesperson for Zee Entertainment Enterprises Limited said the ECIR is addressed to Chandra in his personal capacity and has no bearing on the company's operations. Immigration authorities have issued a look-out circular to prevent Chandra from leaving the country at any port or border crossing upon the CBI's request.